2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Reclassification of accounts receivable allowances to accrued other expenses

Accounts receivable, net:

	December 31, 2018			December 31, 2017
Gross accounts receivable	$	2,774,619		$	2,811,638
Allowance for doubtful accounts		(14,013	)		(15,094	)
Allowance for marketing distribution funds *		––			(127,821	)
Allowance for returns *		––			(439,211	)
Allowance for price protection, promotions *		––			––
Total allowances		(14,013	)		(582,126	)
Total accounts receivable, net	$	2,760,606		$	2,229,512

Accrued other expenses:

	December 31, 2018		December 31, 2017
Audit, legal, payroll	$	234,119	$	314,504
Trademark licensing costs		875,000		750,000
Reserve for returns and contract liabilities*		611,719		––
Other		289,437		108,480
Total accrued other expenses	$	2,010,275	$	1,172,984

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* Upon adoption of ASC 606 on January 1, 2018, certain accounts receivable allowances totaling $611,719 as of December 31, 2018 were reported as accrued other expenses as payable to the Company's customers and settled in cash or by credit on account. Had the Company adopted ASC 606 in 2017, $567,032 would have been recorded as accrued other expenses instead of a reduction to gross accounts receivable.

Disaggregation of revenue

Disaggregated revenue by distribution channel:

	Year 2018		Year 2017		Change $		Change %
Retailers	$	29,166,422	$	27,862,870	$	1,303,552		4.7	%
Distributors		1,730,702		731,246		999,456		136.7	%
Other		1,426,359		823,875		602,484		73.1	%
Total	$	32,323,483	$	29,417,991	$	2,905,492		9.9	%

Disaggregated revenue by product:

	Year 2018		Year 2017		Change $		Change %
Cable Modems & gateways	$	29,135,155	$	28,289,194	$	845,961		3.0	%
Other		3,188,328		1,128,796		2,059,532		182.5	%
Total	$	32,323,483	$	29,417,990	$	2,905,493		9.9	%